As more individuals marry later in life, prenuptial agreements are more popular than ever. However, these legal documents are sometimes poorly understood.
Before raising the prenup conversation with your future spouse, get the truth about these common prenuptial myths.
You only need a prenup if you or your spouse is wealthy
Although prenuptial agreements do establish how the couple will divide assets in a divorce, these assets do not necessarily need to be substantial for a prenup to make sense. In fact, this type of legal document can create plans for who will take custody of a pet, who will live in the family home, and how and if one party will pay spousal support.
The couple can also use this agreement to maintain separate property and debt as well as divide assets among their children. Regardless of your level of wealth, having a prenup can help you avoid future financial disputes.
Prenuptial agreements are expensive
In fact, most couples who divorce save money if they have a prenup compared to the cost of litigating disagreements about property division and spousal support. The upfront cost of creating this legal agreement can limit legal expenses and provide peace of mind if the marriage ends.
Prenups take the romance out of your engagement
Although your marriage is primarily about your feelings for your future spouse, it is also a legal agreement. When you join in this union with another person, you combine your finances and share both the romantic and mundane parts of life, like planning for retirement and establishing a budget.
Having a prenuptial agreement is just one more way to get on the same page with the most important person in your orbit. Rather than creating conflict, the process of working together on a prenup should be a win-win situation that protects both partners from the unknown future.
You do not need a prenup if you are young
Many couples marrying in their 20s or 30s think prenuptial agreements are only for older people with lots of assets. But if you or your partner owns a home, owns a business, has a retirement account, has student loan debt or credit card debt, or simply wants to make sure that they retain sentimental family heirlooms, a prenuptial agreement also makes sense.